The World's Oceans Play a Role in Reducing Global Warming

question 17

Multiple Choice

The world's oceans play a role in reducing global warming by:

• A) absorbing surplus heat.
• B) increasing oceanic primary productivity.
• C) moving carbon dioxide and nutrients from the deep ocean to the surface ocean.
• D) removing CO₂ and sequestering CO₂ in ocean sediments.
• E) trapping CO₂ in sea ice.

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Definitions:

Operating Leverage

A financial measure of a firm's fixed versus variable costs, which assesses how revenue growth translates into growth in operating income.

Financial Leverage

The use of borrowed funds to increase the potential return on investment.

MM Model

The MM Model, or Modigliani-Miller Theorem, is a finance theory that suggests market value of a company is determined by its earning power and risk of underlying assets, independent of its capital structure.

Cost Of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate projects.